🧾 Article 303 of the Indian Constitution
Title: Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce
🔍 Explanation:
Article 303 is a safeguard against discrimination in the field of inter-state trade and commerce.
It prohibits both the Parliament and State Legislatures from making discriminatory laws that favor one state over another in matters of:
-
Trade
-
Commerce
-
Intercourse (movement of goods or people)
📘 Text of Article 303:
Clause (1):
"Neither Parliament nor the Legislature of a State shall have power to make any law giving preference to one State over another, or making any discrimination between one State and another."
✅ This means:
-
No law can be passed that favors one State's economy over another.
-
Prevents regional economic imbalance caused by biased legislation.
Clause (2):
Exception: Parliament may make discriminatory laws only if it is necessary to deal with a scarcity of goods in any part of India.
✅ This allows temporary exceptions for:
-
Managing crisis situations (e.g., natural disasters, food shortages)
-
Ensuring equitable distribution of scarce resources
📊 Summary Chart: Article 303
Feature | Details |
---|---|
Article | 303 |
Applies To | Parliament & State Legislatures |
Prohibited Action | - No preference to one State over another - No discrimination in trade laws |
Exception Allowed? | ✅ Yes, but only Parliament and only during scarcity of goods |
Purpose | To maintain economic equality and national integration |
Related Articles | Linked to Article 301 (freedom of trade) and Article 302 (restrictions allowed) |
⚖️ Example:
-
❌ Invalid Law: A law that gives tax benefits only to factories in Maharashtra and excludes other states → ❌ Violates Article 303(1)
-
✅ Valid Exception: Parliament restricts onion exports from all states except Rajasthan, where there's a severe shortage → ✅ Allowed under Article 303(2)
🧠 Why Article 303 Is Important:
-
Prevents favoritism or regional bias in national trade policies.
-
Promotes equal opportunity and fair competition among states.
-
Ensures uniform economic growth across India.
Here is a clear and exam-focused 📊 Comparison Chart of Articles 301, 302, and 303 of the Indian Constitution, which together regulate trade, commerce, and restrictions across India:
📘 Chart: Articles 301 to 303 – Trade, Freedom & Restrictions
Article | Title | Main Focus | Who Has the Power? | Restrictions / Exceptions |
---|---|---|---|---|
301 | Freedom of Trade, Commerce & Intercourse | Guarantees free movement of goods and people across India | — | Subject to Articles 302–305 |
302 | Power of Parliament to Impose Restrictions | Parliament can restrict freedom of trade in public interest | Parliament of India | Restrictions must be reasonable and for public interest |
303(1) | No Discrimination Between States | No law can give preference to one State over another | Parliament & State Legislatures | Absolute prohibition (unless exception applies) |
303(2) | Exception to Article 303 | Parliament may discriminate in case of scarcity of goods | Parliament only | Must be justified by emergency or scarcity situation |
🧠 Quick Summary:
-
Article 301 → Gives freedom
-
Article 302 → Parliament can limit freedom in public interest
-
Article 303 → No favoritism to any State
-
✅ Exception: Parliament may allow temporary discrimination to address scarcity
-
🧾 Example:
Scenario | Applicable Article | Valid? |
---|---|---|
Goods freely moving from Delhi to Kerala | 301 | ✅ Yes |
Parliament bans sale of firecrackers across India | 302 | ✅ Yes (public interest) |
State law gives subsidies only to industries in its capital | 303 | ❌ No (discriminatory) |
Parliament favors one State during flood due to food crisis | 303(2) | ✅ Yes (exception allowed) |
Follow Us